Introduction to Distribution Management

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Distribution Management

Introduction to

What do we mean by Logistics?
• Logistics concerns itself with the movement of the physical flow which begins with the source of supply and ends at the point of consumption. • Logistics is also concerned with:
• • • • • • • Plant and warehouse location Inventory levels Production scheduling Materials management Storage Customer order processing Inwards and outwards freight and

• Distribution channels.

History of warehouse
• In early writings, man was described as having stored excess food and kept animals for emergency surplus. • As civilization developed, local warehouses were introduced. Merchandise was stored in connection with shipping, trading, and manufacturing activities. •
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• Why we need to emphasize it? • What will be the possible elements of distribution activity which affect customer service.

Warehousing Environment
• • • • • • • • E-commerce Supply chain development and partnering Globalisation Quick response Just in time Rising labour costs Increasing SKU population Increasing technology choices

Warehouse Requirements
• • • • • • Execute more, smaller transactions Handle and store more items Provide more product & service customization Offer more value added services Process more returns Receive and ship more international orders

Warehouse Limitations
• Less time to process orders • Less margin for error - requirement for exacting accuracy levels • Difficulties in finding suitable staff • Warehouse management system (WMS) capability / fit to requirement problems, or justification for ROI

The Bottom Line
• Warehouses / distribution centers play an increasingly important role in the success or failure of business enterprises.

Warehouse master planning methodology

Warehouse master planning methodology
• Investigating warehouse operations through warehouse activity profiling and warehouse performance benchmarking. • Innovating, optimizing and simplifying warehouse operations in receiving and
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